European households face tremendous obstacles when intending to open a savings account outside their home country. The shortage of deposits has become a major reason for banks ́declining loan supply and ultimately is responsible for a substantial part of the investment weakness and GDP decline...

We provide an assessment of the Basel Committee on Banking Supervision (BCBS) proposal to restrict the internal ratings-based approach on bank risk and to introduce risk-weighted asset floors. If well enforced, risk-sensitive capital regulation results in a more efficient credit allocation...